1.Product Overview
The QFLP (Qualified Foreign Limited Partner) system is a significant initiative by the Chinese government, following the QFII system, aimed at opening up the primary market to foreign institutional investors. This move indicates that China is gradually easing restrictions on foreign capital access, representing a breakthrough in the existing foreign exchange control system. The QFLP system was initially piloted in cities like Beijing, Shanghai, and Chongqing, where relevant authorities would approve specific quotas for foreign-invested equity investment institutions on a case-by-case basis. On January 12, 2011, the release of the Implementation Measures for carrying out the Pilot on Foreign-invested Equity Investment Enterprises in Shanghai marked the formal launch of the QFLP pilot in Shangha1. These measures require qualified foreign limited partners to appoint a domestic commercial bank as their custodian to manage their assets.As of the first half of 2022, more than 20 cities across China have launched QFLP pilot programs.

2.Target Clients
According to existing QFLP regulations, the QFLP custody services of ICBC mainly target at: foreign sovereign funds, pension funds, endowment funds, charity funds, FOF (fund of investment fund), insurance companies, banks, securities companies and other approved foreign institutional investors.

3.Scope of Services
1.Account opening: open fund account, securities account and other relevant accounts for QFLP clients in accordance with requirement of the regulators;
2.Asset custody: set independent accounts for different QFLPs, keep the account independently, make sure the account balance match with vouchers, and guarantee the integrity and independence of fund assets;
3.Fund transfer: timely handle clearing and delivery of fund assets in accordance with investment instructions issued by fund managers;
4.Investment supervision: supervise whether instructions and investment operations of the fund managers are compliant according to laws/regulations and requirements of the clients;
5.Accounting: carry out fund accounting, check and review net asset value of fund assets calculated by the fund managers;
6.Custody report: provide fund custody and accounting reports to the fund investors and regulators on a regular basis;
7.Record keeping: keep record, accounts, statements and other materials relevant to the QFLP' custody business for at least 15 years in accordance with the government regulations.

4.Advantages
As the largest custodian bank in China, ICBC has maintained its leading position in the market for many years in terms of market share of asset custody business.
It is also the most professional custodian bank in China, with an advanced custody service system independently developed by it. The system has obtained ISAE3402 authentication (formerly known as SAS70), the first one of its kind in China, indicating that ICBC’s custody services have met international standards.
ICBC, the most powerful domestic commercial bank, owns a fast clearing network, abundant RMB funds and strong A share settlement capability, hence it can provide QFLP Clients with efficient and comprehensive service support.

5.Contact Information
For assistance with related services, please contact the Global Asset Custody Division of the Asset Custody Department at the Industrial and Commercial Bank of China (ICBC):
Contact Person: Siqi Lei
Tel: +86 10 6610 4709
E-mail: siq1.lei@icbc.com.cn